Introduction
This report provides a comprehensive analysis of Shiba Inu (SHIB) for 20 June 2023. The analysis includes a review of the current price, technical indicators, and moving averages.
Price and Volume Overview
As of 7:05 a.m. UTC on 20 June 2023, on Binance, Shiba Inu (SHIB) is trading at $0.00000719, down by $0.00000002 (-0.28%). The volume stands at 2,748,934,577,303 SHIB. The bid and ask prices are $0.00000719 and $0.00000720, respectively. The day’s range has been between $0.00000704 and $0.00000733.
Technical Indicators
Technical indicators are statistical tools used by traders and investors to predict future price movements and market trends.
Here’s a detailed breakdown of the technical indicators for Shiba Inu (SHIB):
RSI(14): The 14-day Relative Strength Index is 49.688, indicating a neutral position. The RSI measures the speed and change of price movements on a scale of 0 to 100. Traditionally, the asset is considered overbought when the RSI is above 70 and oversold when it’s below 30. In this case, SHIB is neither overbought nor oversold, suggesting a balance between buying and selling pressures.
STOCH(9,6): The Stochastic Oscillator is 39.477, indicating a sell position. This momentum indicator compares a particular closing price of the asset to a range of its prices over a certain period of time. The current value suggests that SHIB is closer to its lows than its highs, which is typically viewed as a bearish signal.
STOCHRSI(14): The Stochastic RSI is 11.491, indicating an oversold condition. This is a technical momentum indicator that compares the level of the RSI to its high-low range over a set time period. An oversold condition could indicate a buying opportunity as the price might rebound soon.
MACD(12,26): The Moving Average Convergence Divergence is 0.000, indicating a neutral position. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD line crossing above the signal line can be a bullish signal, and when it crosses below, it can be a bearish signal. In this case, the MACD line is on the signal line, indicating a neutral position.
ADX(14): The Average Directional Index is 15.814, indicating a neutral position. The ADX is used to measure the strength or weakness of a trend, not the actual direction. Values below 20 are often associated with non-trending markets, and values above 25 may indicate a trend.
Williams %R: The Williams %R is -52.941, indicating a neutral condition. This momentum indicator measures overbought and oversold levels. Readings range from 0 to -100, with -50 as the middle line. Readings above -20 are considered overbought, and readings below -80 are considered oversold. The current reading suggests that SHIB is neither overbought nor oversold.
CCI(14): The Commodity Channel Index is -73.5669, indicating a sell position. The CCI is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to spot trends and trend changes.
ATR(14): The Average True Range is 0.0000, indicating high volatility. The ATR is a technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period. High values often occur at market bottoms following a “panic” sell-off.
Highs/Lows(14): The value is 0.0000, indicating a neutral position. This indicator is used to identify the highest and lowest prices for the asset over a particular period.
Ultimate Oscillator: The value is 50.137, indicating a neutral position. This is a technical indicator that is used to measure momentum across multiple timeframes. The value is in the middle of the scale, suggesting a balance between buying and selling pressures.
ROC: The Rate of Change is 0.139, indicating a buy position. The ROC is a momentum oscillator, which measures the percentage change between the current price and the n-period past price. A positive ROC indicates a bullish signal, suggesting the price is increasing.
Bull/Bear Power(13): The value is 0.0000, indicating a neutral position. These indicators measure the balance of power between bulls (buyers) and bears (sellers). A positive value indicates that bulls are in control, while a negative value indicates that bears are in control. In this case, the balance is neutral.
Here is a summary of the technical indicators in table form
The technical indicators summary shows one buy signal, two sell signals, and seven neutral signals, leading to a summary action of “NEUTRAL”.
Moving Averages
Moving averages are a type of data smoothing technique that analysts use in technical analysis to identify trends in a set of data, such as stock prices. They help to reduce the noise and fluctuation in price data to present a smoother line, making it easier to see the overall direction or trend.
There are several types of moving averages, but two of the most common ones are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).
Simple Moving Average (SMA): The SMA is calculated by adding the prices for a certain number of periods and then dividing by that number of periods. For example, a 5-day SMA would add the closing prices for the last five days and then divide by five. The SMA gives equal weight to all the data points in its calculation.
Exponential Moving Average (EMA): The EMA is similar to the SMA but gives more weight to recent data. This means it responds more quickly to recent price changes than the SMA. The calculation of the EMA is a bit more complex than the SMA, involving an exponential smoothing factor to give more weight to recent prices.
The significance of different period moving averages (like 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day) lies in the timeframe that traders are interested in:
5-day, 10-day, and 20-day moving averages are often used for short-term trends. They respond quickly to price changes and are useful for traders looking to take advantage of short-term price movements.
50-day and 100-day moving averages are more medium-term. They are less sensitive to daily price fluctuations and provide a clearer picture of the medium-term trend.
200-day moving average is a long-term trend indicator. It’s less sensitive to daily price fluctuations and provides a clearer picture of the long-term trend. Many traders consider a market to be in a long-term uptrend when the price is above the 200-day moving average and in a long-term downtrend when it’s below.
It’s important to note that moving averages are lagging indicators, meaning they are based on past prices. They can help identify a trend but won’t predict future price movements.
Here’s a detailed breakdown of the moving averages for Shiba Inu (SHIB):
MA5: The 5-day SMA is 0.00000720, indicating a sell position. The 5-day EMA is 0.00000700, indicating a buy position.
MA10: The 10-day SMA is 0.00000721, indicating a sell position. The 10-day EMA is 0.00000700, indicating a buy position.
MA20: The 20-day SMA is 0.00000719, indicating a sell position. The 20-day EMA is 0.00000700, indicating a buy position.
MA50: The 50-day SMA is 0.00000720, indicating a sell position. The 50-day EMA is 0.00000700, indicating a buy position.
MA100: The 100-day SMA is 0.00000703, indicating a buy position. The 100-day EMA is 0.00000700, indicating a buy position.
MA200: The 200-day SMA is 0.00000686, indicating a buy position. The 200-day EMA is 0.00000800, indicating a sell position.
Here is a summary of the moving averages in table form:
The moving averages summary shows seven buy signals and five sell signals, leading to a summary action of “BUY”.
Conclusion
The market conditions for Shiba Inu (SHIB) are currently mixed. The technical indicators suggest a neutral position, but the moving averages suggest a buy position. This could indicate some uncertainty in the market, with potential for both upward and downward movements. Investors should be aware of the oversold conditions indicated by the STOCHRSI(14). These suggest that the asset is currently being heavily sold, which could lead to a potential price correction in the future.
Moreover, the high volatility indicated by the ATR(14) suggests that there could be significant price movements in either direction. Therefore, traders and investors should exercise caution and consider these factors when making their trading decisions.
As always, it’s important to note that while technical analysis tools can provide useful insights, they are not a guarantee of future performance, and all trading strategies should be used in conjunction with other market information and individual research.
Featured Image Credit: Photo / illustration by “Dylan Calluy” via Unsplash
